Primary Market Flashcards

1
Q

What is the role of the primary market?

A

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2
Q

What is meant by face value of a share/debenture?

A

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3
Q

What do the terms Premium and Discount mean in the security market?

A

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4
Q

Why do companies need to issue shares to the public?

A

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5
Q

What are the different kinds of issues? Explain Initial Public offering and Follow-on Public offering.

A

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6
Q

Explain Rights issue.

A

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7
Q

Explain preferential issue.

A

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8
Q

What is meant by issue price and market capitalization?

A

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9
Q

Differentiate between public issue and private placement.

A

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10
Q

What is an IPO?

A

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11
Q

Who decides the price of an issue?

A

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12
Q

How is price discovery through book building process done?

A

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13
Q

Differentiate between book building and normal public issue.

A

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14
Q

What is a cut-off price and floor price?

A

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15
Q

What is a price band in a book built IPO?

A

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16
Q

Who decides the price band? - Can individual investor use book building facility to make an application?

A

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17
Q

How does one know if shares are allotted in an IPO for sale? What is the timeframe for getting refund if shares aren’t allotted?

A

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18
Q

How long does it take to get the shares listed after issue? What is the role of a Registrar to an issue?

A

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19
Q

Does NSE provide any facility for IPO?

A

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20
Q

List the advantages offered by book building through NSE system.

A

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21
Q

What is a prospectus?

A

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22
Q

What does draft offer document mean? What is an abridged prospectus?

A

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23
Q

Who prepares the prospectus/offer documents?

A

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24
Q

What does one mean by lock-in?

A

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25
Q

What is meant by listing of securities?

A

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26
Q

What is a listing agreement?

A

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27
Q

What does delisting of securities mean?

A

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28
Q

What is the SEBI’s role in an issue?

A

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29
Q

Does it mean that SEBI recommends an issue?

A

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30
Q

Does SEBI tag make one’s money safe?

A

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31
Q

Can companies in India raise foreign currency resources?

A

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32
Q

What is American Depository Receipt?

A

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33
Q

What is ADS?

A

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34
Q

What is ADS used for?

A

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35
Q

What is Global depository receipt

A

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